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Richard -

The answer to your question is a bit complicated...

A tax-deferred annuity can be a good place to park a lump sum of money for retirement (that's what it was designed for!), however the two drawbacks to overcome are: the money is locked up 'till age 59½ (earlier withdrawal results in tax + penalty), and when funds are withdrawn in retirement you'll draw out gain first (which is taxable as ordinary income) before principle.

Using an annuity might be ok, after considering your entire financial situation, including goals & other financial obligations. Be sure of your needs before making a long-term commitment...

Good luck, PP
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